DETERMINANTS OF NANO BUSINESS PARTICIPATION: AN EMPIRICAL INVESTIGATION OF SOME SELECTED BUSINESS HOLDERS IN ALIMOSHO LOCAL GOVERNMENT AREA (LGA), LAGOS STATE, NIGERIA

Adijat O. Olateju

Abstract


Nano business a new business category is now recognize in most country and Nigeria is not left out. The recent SMEDAN-NBS survey in 2021 identified the high number of Nano enterprises among enterprises in Nigeria, the income generation ability, and employment creation especially for the vulnerable. In view of this, this study, examines the factors that determine business holders’ participation in Nano enterprises - a new business category with little research attention. A simple random sampling of 248 business holders was selected in the study area, from these sample, 168 are nano business owners and 80 represents others businesses: micro enterprises (MEs) and small and medium enterprises (SMEs). Data were analysed through descriptive statistics and probit regression analysis. The results obtained from the probit analysis indicate that among the seven factors (education, age, gender, marital status, nature of business, business size and capital involved) used to measure the determinants of nano business participation, only age of the business holders, nature of business, and size of the business are insignificant determinants of nano business participation while other factors – education, gender, marital status and capital involved  are significant determinants and follow the expected signs. It is therefore recommended that stakeholders, NGOs, financial institutions, and government should consider these factors when dealing with nano businesses for growth, development, and sustainability to be achieved in the sub-sector.


Keywords


Nano business, MEs, SMEs, growth, development, vulnerable.

Full Text:

PDF

References


Amuda-Kannike, A. (2019). The effect of rule of law, security and national peace on

entrepreneurship development and economic transformation in Nigeria; a paper presented at Covenant University.

McKeown, T. & Phillips, K. (2014). Growing and sustaining entrepreneurial ecosystems:

Recognizing the importance of the ‘Nano-Business’. White Paper WP03-2014, Small Enterprise Association of Australia and New Zealand (SEAANZ), www.seaanz.org

Olubiyi, T (2021).Nano, Micro, and Small Businesses: Path to Growth with Government Services And

Contracts

Olubiyi , T (2022). Nano, micro, small and large businesses: Why customer convenience is king

Omnisperience (2020). Nanobusiness - A New Business Category

Partnership for Advancing Women in Economic Development, (PAWED) (2022). Challenges of

informalization of business sector activities for women in Nigeria and prospects and opportunities for formalization. PAWED Advocacy Coalition: Abuja, Nigeria

PwC- MSME Survey 2020

SMEDAN-NBS (2021). 2021 MSME Survey report. Abuja: SMEDAN & NBS


Refbacks

  • There are currently no refbacks.


 

 

 

 

ISSN (Print): 2276-8645

 

 

   

 

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.